LIC mulls hiking stake in Mahindra Satyam

CHENNAI: In a move that signals investor confidence, LIC ‘s managing director DK Mehrotra said that the company is not exiting its investment in software service firm Mahindra Satyam. On the contrary, it would look at hiking its stake when there’s a good opportunity.

There is no move to exit Mahindra Satyam. If opportunity comes, LIC might in-crease stake. We look at long term and not short term opportunities and gains. So, in the long term, if the company is doing well, we might look into hiking stake,” Mr Mehrotra said on Monday.

LIC had 4.43% stake in Satyam in January last year, when the scandal broke out. It later also had its own nominee SB Mainak on the government-appointed board of Satyam. Though its stake in the company has come down, in the last year, exact numbers were not available.

Going by BSE filings for the period ended September 2009, 24 insurance companies hold 2.92% in Mahindra Satyam. LIC’s move to stay invested in Mahindra Satyam comes in the backdrop of L & T paring its stake in the company through the open market.